Today was a really interesting day in the markets for me.
As I have been writing on this blog – currently I am spending the majority of my time testing a 1-hour timeframe based strategy. At the same time, I am trading this strategy live over 30 different instruments.
I opened two positions yesterday, going long (buying) GBPCHF and shorting (selling) USDCAD. Both of these were still open this morning, with a slight net profit across the two positions.
As the morning took its course, I added five more positions (three at 9am, one at 10am and one at 11am) – each one with a risk of £150. The positions started to head in the directions that I was favoring, on the basis of my setups. Thus at 1:30pm I was up around £500-£550 across my seven positions – which equates to 3.5 units of risk (525/150).
As I mentioned in today’s other blog post, a fresh Brexit poll turned my positions rather sour very quickly.
My strategy said that I should continue holding the positions. However, as I had just gone from +3.5R to -0.5R in the space of ten minutes, it was a bit too much too bear and I decided to close all positions with a quick click of the button on my FXCM platform. UPDATE: On Wed morning, I quickly reviewed the charts to see how the trades would have played out, had I stuck to the guns of my strategy – findings from the analysis were as follows:
One of my trading colleagues in the office and I have a mutual understanding, that on the first day on which I hit £1,000 of profits, will be the day on which I will quickly buy a bottle of champagne for us to drink before the end of the trading session. Sadly today was not going to be the day, after comfortably getting to the half-way mark. Interestingly, had the poll results been more favourable (“favourable” as to what the market participants want to see), then I probably would have hit the £1k target rather quickly.
Anyways, the main lesson for today …….
I am realizing that the actual trading results are starting to concern me less. On most days a big win, or a big loss, in a trading session would have a big psychological impact on me. Today’s swing didn’t actually have a big impact on me. I am much more concerned with the testing results that I am generating. That’s because the testing results will give me much more indication of the strategy’s effectiveness and potential profitability than a single trading session. Thumbs up for the testing I guess!